How Will the 2006 Special Session Affect Louisiana Tax Fairness?

Louisiana lawmakers currently face a pleasant dilemma: how to dispose of a short-term budget surplus exceeding $2 billion. In the opening days of the special legislative session that began last Friday, tax writers in the House of Representatives’ Ways and Means Committee approved several bills that would reduce state income tax collections substantially. This analysis looks at the overall fairness of Louisiana’s tax system, and assesses the impact of two of these bills on Louisiana tax fairness.